commercial real estate
Edmonton Investors Take Note: New Condos for Sale
There are typically two kinds of people who purchase real estate – those who plan to make the purchase their home and those who see the purchase solely as an investment. Just prior to the 2008 economic collapse, it felt like everyone was keen to invest in Edmonton real estate. Speculators were snatching up new condos for sale in the city’s downtown and suburbs. Unfortunately, many of these investors forgot the business maxim: buy low, sell high. Many first-time real estate investors ended up with over-priced condos. However, 2012 is different year and Edmonton’s real estate market is looking is good.
On January 20, 2012, the Edmonton Journal ran a story about Edmonton’s economy. In terms of an upward swing, Edmonton is just behind Toronto in CIBC’s measure of economic momentum. For investors of new condos for sale in Edmonton, these reports are a green light. As the city’s population increases and investments grow, the real estate market is ripe with opportunity. Compared to 2006 and 2007, the real estate market is considered soft. This is the time to buy real estate since the prices are reasonably low yet all signs suggest that properties will increase in value in the coming years.
For first-time or beginner real estate investors, new condos for sale are a great starting point. First, they are less expensive than buying a house. When you’re still learning about real estate as an investment, it’s easier to manage a low priced investment than something that takes all your savings and/or equity. Second, new condos for sale in Edmonton are abundant. In other words, the supply is more than many builders and developers planned. Third, new condos are appealing to renters as they are brand new. Renters want the condo look and the modern feel without having to buy their own place.
While new condos for sale in Edmonton have all the markings of a great investment, they should not be purchased haphazardly. The rule of thumb is that the tenant should be paying at least 10% more than your expenses. If you suspect this might be difficult, don’t make the purchase. The other words of caution are that while the Edmonton real estate market is soft, the rental vacancy rate is also high. This means that there many be some initial difficulty finding tenants.
There are many new condos for sale in Edmonton. These condos are at reasonable prices and ready for new real estate investors. 2012 is the year to invest.
Commercial Real Estate – The Next Implosion Coming
Analysts are bracing themselves for a stream of highly negative news in the Commercial loans department very soon. Failing businesses who have pre-existing loans agreements and are not meeting their rent payments are causing development companies and other banks a lot of drama.
The Federal Reserve and other officials have done their best to try and cool down the problems but as the economy tumbles so to to peoples job and incomes. This is only going to make the situation worse. Like a domino effect almost all industry sectors will be affected, both commercial and industrial.
Some of the lenders are totaling up their losses but these have not been reported in the mainstream media just yet. As residential foreclosures mount up what no one realizes is that at the same time businesses have been suffering just as bad and there was a big surge in commercial property carrying organized mortgages that were sold as bonds on wall st many years ago. Before the market crashed at the end of 2008 there was allegedly $700 billion dollars in these mortgage securities and now some of them have lost as much as 40% of their value.
Officials are still tallying up all the numbers and analysts say that when these figures come out in the media it won’t be pretty. It could even be the next catalyst for a downturn / sell off on the equities market again.
Those with bigger loans in the commercial industry realize that if the economy takes anther bigger hit at the end of this year (as feared), they are at a bigger risk of not only losing their business but their livelihoods as well. Time will tell.
The Hidden Benefits of New Condos
Have you recently started researching new condos for sale? Perhaps you have determined that having a house with the grass to mow and the sidewalks to shovel are just too much to take on at this point. Or, maybe you are currently living in a house and it is time to downsize and relinquish some of those chores. This can be an exciting as well as a smart decision. Though smaller in size, new condos generally cost less than traditional homes, and most well-kept units tend to appreciate in value over time. There are other less obvious aspects to condo ownership that just might make the decision easier.
First, new condos come with pre-built communities. With a house, the size of each property creates a natural barrier between you and your neighbors. Condo units may be smaller than houses, but they are also closer together and often share common areas, allowing you the opportunity to get to know your neighbors, their children and maybe even their pets. You all share a common bond, making it difficult to not be a part of a tightly knit community when you live in new condos.
Perhaps you have always fancied yourself a closet politician, or you just want to get involved in your new community. Guess what? Homeowners associations govern most new condos. These groups are made up of elected co-owners, just like you! Within a short time, you could rise from an occupant to a leader in your community, helping to determine condo policy and taking an active role in improving and maintaining your territory. Or, you may prefer to let the new condos board work with those issues and attend the meetings only when you have a suggestion or a concern to bring forward. It can be reassuring to know that there is a group of fellow condo owners who will address potential issues.
Finally, and most importantly, you can tell all of your social peers that you live in a condo. While your boss talks about the leaky septic tank in his older townhome, you can espouse on how great condo life is. When it comes to new condos, it is about more than convenience and affordability. It is a lifestyle choice; enjoy your adventure in searching for new condos.